Genstar Capital Announces Sale of its Position in Stream International to Solectron
10/30/2001
Contact:
Genstar Capital
Andrea Ginsberg
(415) 664-4680
aginsberg@gencap.com
SAN FRANCISCO, CA, October 30, 2001—Genstar Capital LLC today announced that it completed the sale of its position in Stream International, a global Customer Relationship Management (CRM) outsourcing and support services provider for leading technology companies to Solectron Corporation (NYSE: SLR) in a transaction that returned 2.6 times its invested capital in under two years for an annual rate of return on investment of over 71%. Genstar Capital, together with a group of other investors, led by Bain Capital, Inc. acquired Stream in 1999 from R.R. Donnelly and Sons Company.
“Stream has experienced substantial growth while building a strong, healthy organization to lead us toward our vision to become our clients’ most trusted partner. We have accomplished this by investing in our people, in technology and in our operations,” said Steve Moore, Chairman and Chief Executive Officer for Stream International. “When we were seeking financing in 1999, Genstar was a partner of choice because of their expertise and contacts in related industries. Genstar’s investment coupled with Rick Hoskins’ contribution at the Board level was integral to Stream’s success.”
“The growth and development we have seen at Stream since making our investment in January 2000 has surpassed our highest expectations,” said Rick Hoskins, Managing Director of Genstar Capital and until the sale, a director of Stream. “By pursuing our investment strategy of making control-oriented equity investments, structured as leveraged buyouts or growth financings in companies involved in life sciences, information technology and industrial technology, we have been able to source some exceptional investment opportunities, Stream being one of them. Genstar Capital became aware of Stream in 1998 through one of its Strategic Advisory Committee members who knew the technical support industry. Keeping in line with our investment plan, Stream brought in R. Scott Murray as President and Chief Operating Officer and shifted the strategy from revenue growth to profit growth. After nearly two years of improving profit margins and revenue growth rates, Stream became the leading player in its field and a very attractive acquisition candidate. Given the difficult environment that most technology companies are facing today, we are particularly proud of this investment and believe that Stream is a good example of what a good strategy and strong management can accomplish.”
Based in San Francisco, Genstar Capital is a private-equity investment firm that makes leveraged investments in quality companies. Genstar Capital works in partnership with management to create value over the long term. With more than $440 million of committed capital under management and significant experience operating and investing in businesses, Genstar Capital brings a unique mix of experience to portfolio companies.
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